Friday, Mar. 13, 2009

Fiscal expert urges higher taxes to fund schools

BELLEVILLE -- Ralph Martire, a renowned fiscal policy expert, has this advice for St. Clair County homeowners unhappy with soaring property tax bills: Forget tax caps.

Instead, they should put their energy into passing a law that would raise the state income tax by two-thirds, while creating lots of new sales taxes, including services provided by lawyers and barbers.

That way, with higher taxes, Illinois -- which Martire said has one of the nation's worst systems of paying education -- would finally fund its school system fairly and sufficiently. Martire is the executive director of the bi-partisan Center for Tax and Budget Accountability in Chicago.

"If we're going to meet the need, then we need to grow the pie," Martire told the county 25-member tax policy panel, which held its monthly meeting Thursday morning at the Regional Office of Education, 1000 S. Illinois St.

Although Illinois is the nation's fifth richest state, it has, overall, one of the lowest state tax burdens, Martire said.

Raising state income tax to 5 percent from the current 3 percent would mean "We would jump all the way up to Mississippi, the poorest state in America," Martire said.

St. Clair County Board member Steve Reeb, R-Shiloh, said he doubted county voters would support big tax increases, especially during the current economic downturn.

"I think, in these times, you're not going to sell another tax to people," Reeb said. "It's just not going to happen."

Reeb repeated his support for placing on a county ballot a measure known as the Property Tax Extension Limitation Law, or PTELL, which would cap property taxes at the lessor of 5 percent or the rate of inflation.

Martire, however, urged panel members to oppose PTELL because of the limitations it places on new school revenue.

Although politically attractive, Martire said, "from a fiscal policy standpoint, it's disastrous."

The tax policy panel is scheduled to hold its next monthly meeting from 6 to 8 p.m. April 9 at the St. Clair County Building, 10 Public Square, in Belleville.

This will be the only meeting in which members of the public may address the panel. But to do so, they must schedule an appointment in advance by calling the County Board office at 277-6600, ext. 2201 or ext. 2203. The maximum time they may speak is five minutes.

Contact reporter Mike Fitzgerald at mfitzgerald@bnd.com or 239-2533.